On February 20, 2018, the FCC’s Wireline Competition Bureau announced that the inflation-based funding cap for Funding Year 2018 will be $4.06 billion, an increase of 1.8% from FY2017. This inflation increase represents an increase of $71.8 million with $53.4 million being for category one services and $18.4 million increase for category two services.
From Funding Year 1998 through 2010, the funding cap was set at $2.25 billion. In its Sixth Report & Order, the Commission began to adjust the funding cap on an annual basis to account for inflation starting with FY2011. The following chart illustrates the annual funding cap and requests for E-rate discounts since the beginning of the program. The total demand for Funding Year 2018 will not be available until after the close of its filing window.